“Macy’s On Call” unites Satisfi’s communications platform with IBMWatson cognitive technology to create an in-store mobile companion that
assists in servicing customer needs; the initial phase of the pilot
program is underway at 10 locations nationwide

NEW YORK--(BUSINESS WIRE)--Jul. 20, 2016--
Today, Macy’s (NYSE:M) announced the pilot of “Macy’s On Call,” a mobile
web tool that allows customers to interact with an AI-powered platform
via their mobile devices. “Macy’s On Call” taps IBM Watson, via Satisfi,
an intelligent engagement platform, to deliver a first-of-its-kind
solution that will enhance the customer in-store shopping experience at
10 test locations nationwide.

The mobile companion, accessed via a mobile browser, allows customers to
input natural language questions regarding each participating store’s
unique product assortment, services and facilities and receive a
customized response to the inquiry. There are a number of ways that
customers may request information. For example, a customer could type,
“Where are the women’s shoes?” or type a combination of brand and
product inquiry such as “I.N.C dress,” and they will receive the
relevant response and location of that product in the store.

Since each Macy’s store is different, and consumers increasingly prefer
mobile platforms, “Macy’s On Call” is providing shoppers with a helpful
tool to get information fast as they shop and navigate the store. The
system will evolve as it learns more about each store’s customers. This
is already evident in the popular searches category, which highlights
the most asked questions, responses to which can be accessed at the
click of the appropriate button.

As part of the pilot, Macy’s is also incorporating a Spanish language
feature to serve a broader subset of its customer base in select stores.

“At Macy’s, we remain focused on identifying, testing and supporting new
ideas and approaches that will help elevate service to our customers
through technology. With an eye towards innovation, we are moving fast
to test and scale up pilot programs that help enhance their experience
with us,” said Peter Sachse, Macy’s chief growth officer. “This program,
in partnership with Satisfi and leveraging the power of IBM Watson, will
help us explore new ways to engage one-on-one with customers in-store,
providing them another level of service right at their fingertips.”

“Bringing Watson into a retail store setting presents an opportunity to
engage with the consumer on a variety of levels. This particular use
case takes Watson beyond helping consumers evaluate purchasing
decisions, and influences another, equally important aspect of the
in-store experience - ease of use in locating products, facilities and
services,” said David Kenny, general manager of IBM Watson. “As more
developer partners like Satisfi continue to build with the technology,
we see Watson more frequently being delivered into the hands of
consumers, and we’re looking forward to learning more from this pilot
with Macy’s and Satisfi.”

“The entire Satisfi team is delighted to be working with such an iconic
brand as Macy's to leverage the power of IBM Watson on this exciting
project. The combination of Satisfi's location-based, intelligent
engagement software, with the cognitive learning capabilities of IBM’s
Watson, has helped us build a powerful and comprehensive tool to enhance
the in-store shopping environment,” said Don White, Satisfi’s chief
revenue officer. “Macy's has been a great partner for this project
because of their commitment to exploring new technology that can elevate
one-on-one interactions with customers, creating a more relevant and
personal experience for them.”

Accessed via macys.com/storehelp,
the pilot of “Macy’s On Call” answers store navigation details provided
by department, brand and product category, as well as provides insight
into the unique in-store services available at each test location - from
My Stylist@Macy’s personal shoppers to Buy Online, Pickup in Store
counters, and store facilities, including restrooms. The engagement is
conducted through a simple question and answer interface leveraging
Watson’s Natural Language Classifier, that is helping Macy’s learn more
about the features and services that most resonate with shoppers.
Additionally, in the Miami-area pilot locations, the interface is
available for customers in Spanish, via Watson Language Translation, as
Macy’s tests language capabilities, functionality and consumer interest
in engagement via preferred languages.

Ten store locations were chosen representing a cross section of Macy’s
store portfolio. Five of the locations serve as the base learning
stores, with the Watson implementation deployed solely as a customer led
self-serve initiative. The other five locations have an enhanced layer
of associate support available to complement the virtual interactions.
At these locations, customers can input a request for face-to-face
engagement with a Macy’s specialist associate.

While Watson technology can power interactions in a number of ways, the
first phase of this pilot program is applying Watson’s natural language
capabilities in a physical retail environment, focused on three customer
centric categories – each store’s unique products, services and layout.
Satisfi accesses Watson’s technology from the cloud and this model is
helping facilitate ongoing learnings and improvements to the solution.
As the program progresses, Macy’s aims to closely study and gauge other
potential uses of the technology, with the goal of implementing Watson’s
full cognitive dialog capabilities in future phases.

At all 10 test locations customers are encouraged to visit macys.com/storehelp
on their mobile browser to engage with the in-store companion. The first
phase of Macy’s On Call recently launched and is expected to run through
late fall of 2016.

“Macy’s On Call” pilot stores are as follow:

Base learning locations:

Macy’s Montgomery – Bethesda, MD

Macy’s Woodbridge Center – Woodbridge, NJ

Macy’s Clackamas Town Center – Portland, OR

Macy’s Santa Anita – Arcadia, CA

Macy’s Miami International – Miami

Connect @ Macy’s locations with additional sales
associate support:

Macy’s Short Hills – Short Hills, NJ

Macy’s Mall of Georgia – Buford, GA

Macy’s Lenox Square – Atlanta

Macy’s Aventura – North Miami

Macy’s Roosevelt Field – Garden City, NY

About Macy’s

Macy's, the largest retail brand of Macy's, Inc. (NYSE:M), delivers
fashion and affordable luxury to customers at approximately 734
locations in 45 states, the District of Columbia, Puerto Rico and Guam,
as well as to customers in the U.S. and more than 100 international
destinations through its leading online store at macys.com. Via its
stores, e-commerce site, mobile and social platforms, Macy's offers
distinctive assortments including the most desired family of exclusive
and fashion brands for him, her and home. Macy's is known for such epic
events as Macy's 4th of July Fireworks® and the Macy'sThanksgiving Day Parade®, as well as spectacular fashion
shows, culinary events, flower shows and celebrity appearances. Macy's
flagship stores -- including Herald Square in New York City, Union
Square in San Francisco, State Street in Chicago, and Dadeland in Miami
and South Coast Plaza in southern California -- are known
internationally and are leading destinations for visitors. Building on a
more than 150-year tradition, and with the collective support of
customers and employees, Macy's helps strengthen communities by
supporting local and national charities giving more than $69 million
each year to help make a difference in the lives of our customers.

Satisfi is a location-based intelligent engagement platform that
combines the speed and accuracy of automation and the personality of a
live person. Using Satisfi, conversion opportunities can be driven in
real-time by capturing customer intentions, sentiments, questions and
needs. The resulting customer engagements enhance the on-site experience
by introducing additional features and bring to light previously unknown
information and insights.

About IBM Watson: Pioneering a New Era of Computing:

Watson represents a new era in computing called cognitive computing,
where systems understand the world the way humans do: through senses,
learning, and experience. Watson continuously learns from previous
interactions, gaining in value and knowledge over time. With the help of
Watson, organizations are harnessing the power of cognitive computing to
transform industries, help professionals do their jobs better, and solve
important challenges.

As part of IBM’s strategy to accelerate the growth of cognitive
computing, Watson is open to the world, allowing a growing community of
over one million developers, students, entrepreneurs and tech
enthusiasts to easily tap into the most advanced and diverse cognitive
computing platform available today. Hundreds of clients and partners
across six continents and across dozens of industries actively use
Watson. More than 550 are already commercializing their ideas and over
100 of these partners have already introduced commercial cognitive
enabled apps, products and services to the market.

This section contains press releases issued by Macy’s, Inc. on the date specified. We have not undertaken any responsibility to update the information in these releases and in some instances the information in these releases may be dated.